Overview
- During more than two hours of oral arguments, several justices from both wings pressed the administration on using IEEPA to impose tariffs when the statute never mentions tariffs or taxes.
- Chief Justice John Roberts, Justice Neil Gorsuch and Justice Amy Coney Barrett signaled concern about delegating tariff-setting to the executive and whether clear congressional authorization is required.
- Roughly $89–$90 billion collected under the IEEPA tariffs could be subject to refund claims if the program is struck down, a prospect Treasury officials acknowledged as they prepare contingency plans.
- The consolidated cases, brought by small businesses and a coalition of 12 states, challenge global “reciprocal” tariffs and fentanyl-related duties on China, Canada and Mexico, while sector-specific measures like steel and aluminum are not at issue.
- If the court rules against the government, trade experts say the administration could pivot to narrower authorities such as the Trade Act’s Section 301 to levy temporary duties, though those tools are more limited.